In two stage least squares estimation, when the matrix Z of predetermined variables has less than full column rank, Z'Z is singular. It is shown that in this situation 2SLS still can be used and that Y - the result of the first stage--is still uniquely determined; also shown is that 2SLS will often be equivalent to OLS.
MLA
Fisher, Walter D., and Walter J. Wadycki. “Estimating a Structural Equation in a Large System.” Econometrica, vol. 39, .no 3, Econometric Society, 1971, pp. 461-465, https://www.jstor.org/stable/1913260
Chicago
Fisher, Walter D., and Walter J. Wadycki. “Estimating a Structural Equation in a Large System.” Econometrica, 39, .no 3, (Econometric Society: 1971), 461-465. https://www.jstor.org/stable/1913260
APA
Fisher, W. D., & Wadycki, W. J. (1971). Estimating a Structural Equation in a Large System. Econometrica, 39(3), 461-465. https://www.jstor.org/stable/1913260
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